“Apple has publicly acknowledged that the iPod is a product that no longer generates the interest or revenue that it once did,” Ciaccia writes. “With the iPod becoming less relevant, why would Apple devote engineering capacity to the product? One theory is that the new product helps to keep Apple’s digital ecosystem in tact [sic], especially for younger users. ‘It’s [iPod] not dead if you are an Apple household, and you have kids who are pre-cellphone age,’ said Hudson Square Research analyst Dan Ernst via email.”
“The iPod Touch is also seen as a device for users to be able to access the Internet, as well as be able to play music, without paying for a data plan,” Ciaccia writes. “It may not just be about tying people into the ecosystem, but helping out with what’s coming next, and maybe moving from them away from Android, stated one hedge fund analyst who declined to be named. ‘Maybe the iPod will tether somehow to the watch opening up possibilities to sell iWatches to people who for whatever reason are locked into Android for phone use.'”
Read more in the full article here.
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